CLTV


#1

Sean,
?
?? i know LTV is loan to value, but what exactly is CLTV and how should i use this in helping me evaluate potential properties?
?
just a quick side question - on your resale estimates - how do you figure repair costs, sales price, etc…
i know i cant just rely on those numbers, i am a contractor and my cousin is in the top .01 of realtors in the nation, so we kick those numbers back and forth. i was just curious how you come up with the numbers on your website.
?
thanks, brent


#2

CLTV = combined loan to value and is our attempt to add up all loans to determine actual owner equity. CLTV is more important for buying or lsiting preforeclosures. LTV is more important for buying at auction because junior loans are wiped out. So we show both.
The numbers that get pre-filled into our financial analysis are set using default values you can change by clicking the Groups link in the upper right corner.
After years of doing detailed repair estimates I’ve found that a quick repair cost per sq foot estimate works just as well unless there is something unusual. $10/ft is a reasonable budget for most properties which is why we set it that way out of the box (remember you can change it). I increase it for older properties or properties with deferred maintenance, and decrease it for well maintained or newer properties.
You can adjust other defaults like commissions and closing costs under Groups as well.


#3

thanks, that makes sense.